Thank you, operator, and good morning. I'm joined by Ron Yekutiel, Kaltura's Co-Founder, Chairman, President, and Chief Executive Officer, and Liron Sharon, Executive Vice President of FP&A and Interim Principal Financial Officer.

Ron will begin with a summary of the results for the second quarter ended June 30, 2026, and provide a business update. Liron will then review the financial results for the second quarter of 2026 in greater detail, followed by the company's outlook for the third quarter and full year 2026.

We will then open the call for questions. Please note that this call will include forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding Kaltura's expected future financial results, management's expectations and plans for the business, including execution on strategic transitions and upcoming product launches, integration and expected benefits of our recent acquisitions, our deal pipeline, trends in customer engagement, anticipated tailwinds, and our expectations around capabilities and benefits of our products, including AI technologies.

These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to differ materially from those discussed here. Important factors that could cause actual results to differ from forward-looking statements can be found in the Risk Factors section of Kaltura's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other SEC filings, including the Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, to be filed with the SEC.

Any forward-looking statements made during this conference call, including responses to your questions, are based on current expectations as of today, and Kaltura assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. Please note, we will be discussing non-GAAP financial measures, adjusted EBITDA, adjusted EBITDA margin, and non-GAAP gross margin during this call.

For a reconciliation of these measures to the most directly comparable GAAP metric, please refer to our earnings release, which is available on our website at investors.kaltura.com. Now, I'd like to turn the call over to Ron.

Thank you, Erica, and thank you, everyone, for joining us today. We continued our strong execution in the second quarter, exceeding the high end of our guidance for both revenue and adjusted EBITDA.

Total revenue was $46.9 million, up 5% year over year. Subscription revenue was $45.6 million, up 8% year over year.

Adjusted EBITDA was $5.9 million, up 44% year over year, and representing our highest second quarter result to date. We also delivered a record non-GAAP gross margin of 75%.

New subscription bookings grew sequentially and included 13 six-figure total contract value deals. Five of these were with new logos across the financial services, healthcare, and education industries.

Beyond the strong financial results, the most important development during the quarter was the meaningful increase in the number of new deals that included our AI products. Given this transition is still just beginning, we want to provide more detail than we normally would about where we see adoption, which products customers are selecting, and the business problems they're beginning to address.

During the second quarter, we signed a record 14 new deals that included one or more of our AI offerings, representing a doubling of our previous record. Nine of these 14 deals included our new Agentic Avatars product, four had six-figure total contract values, and eight were with new logos.

The deals reflect a broad range of industries and use cases: four were with higher education institutions, edtech companies, and publishers that collectively engaged tens of thousands of students; these customers intend to use our products to deliver richer and more personalized teaching and learning experiences; three were with real estate companies, including two subsidiaries of an organization with a network of hundreds of thousands of agents; one deal focused on personalized agent onboarding and training, while the other two focused on online property discovery, customer engagement, and lead qualification; two were with technology companies, including a Fortune 10 company; one customer plans to use our technology for AI-enabled employee onboarding and training, the other plans to deploy a personalized customer concierge across its website and virtual events; two were with global consulting and business process outsourcing leaders; both are Fortune 500 companies with hundreds of thousands of employees; one is using our products for employee onboarding, learning, and development, and the other for personalized customer marketing; two were with financial services companies that each manage trillions of dollars in assets; one plans to use our products for personalized employee knowledge sharing and internal communications, while the other plans to use our products for interactive marketing and demand engagement; finally, one was with media and telecommunications customer that intends to use our products for conversational advertising in point-of-sale experiences in large venues. All combined, these deals span six industries in a broad mix of employee, learner, customer, and audience-facing use cases, providing early evidence that adoption is not limited to one vertical, buyer, or workflow.

From a revenue perspective, as expected, the contribution from these 14 deals remains limited. The combined total contract values were approximately $1 million.

We view these deals as initial footholds that may expand over time through additional users, usage, business units, and use cases. Consistent with the outlook we shared last quarter, we continue to expect initial revenue contributions from our new products in the second half of 2026, followed by a more meaningful ramp in 2027.

I would now like to provide more details about our growing pipeline across all products, the increasing role that AI products are playing within it, and why we remain confident in the opportunity ahead. Our current pipeline for new subscription bookings in the second half indicates the potential to book more than 2.5 times what we booked during the first half of the year.

This expected growth is being driven by both our enterprise, education, and technology business and our media and telecom business. Looking at our sales pipeline of deals that also include one or more AI products for the second half of 2026 and 2027, we currently have more than 500 opportunities at various stages of engagement.

These opportunities currently represent in total approximately $17 million of total non-weighted potential annual contract value, ACV. It is important to put that figure in context: this is a non-weighted pipeline number, which includes the full value of all deals across pipeline stages.

While not all of these opportunities will convert to wins, it's worth noting that most of our AI products were launched very recently, our go-to-market motion is still developing, and many of these engagements remain in early stage of discovery and could grow, and additional opportunities are expected to emerge. We therefore view the current pipeline as an encouraging initial indicator, rather than as a mature representation of the longer-term opportunity.

Let me provide more details about the composition of the current AI-related pipeline. About a third of the number of these opportunities and of the potential ACV comes from new logos.

By industry, more than one third of potential ACV comes from educational institutions, edtech companies, and publishers. About 25% comes from media and telecommunications companies.

Approximately 40% comes from enterprises across a range of industries, led by technology, financial services, healthcare and life sciences, professional services, and consulting and government. By product, the pipeline includes over 200 opportunities involving our Agentic Avatars, and close to 100 involving our Avatar Video Production Studio.

It also includes over 60 proofs of concept that are either already active or currently being scoped. We see similarly broad patterns when we examine the pipeline by use case: about one third of potential ACV is associated with personalized employee journeys; these include employee onboarding, learning and development, compliance, sales enablement, knowledge sharing, internal communications, practice, role-playing simulations; another roughly one third is associated with personalized learner journeys delivered by universities, edtech companies, and publishers; approximately 1/6 relates to customer and partner journeys; these include onboarding, education and activation, marketing and demand engagement, digital sales rooms, customer care and support; the remaining approximately 1/6 relates to audience journeys delivered by media and telecommunications companies, including interactive experiences for television viewers and audiences in physical venues.

Together, these patterns suggest that the opportunity is developing across multiple industries and repeatable use cases, with Agentic Avatars emerging as an important entry point into the broader Kaltura platform. Turning to retention, we also delivered strong performance during the second quarter.

The quarter represented our best gross retention results since the fourth quarter of 2022. We may experience some near-term pressure from certain legacy contracts, including an anticipated roll-off of certain PathFactory customers.

However, over time, we expect the transition towards powering agentic digital experiences to support sustainable gross retention and gradually improve net dollar retention. As discussed previously, NDR will lag the improvement in gross retention.

Let me now turn to product development. Using the three-layer framework we outlined previously, I will highlight the progress we made during the quarter across content creation, content management and intelligence, and interactive conversational experiences.

On the content creation front, we enhanced our avatar production workflows with B-roll and URL-to-video automation, expanded their multilingual capabilities, introduced richer enterprise templates and automated content pipelines, and continued investing in API-first capabilities. These enhancements are designed to allow customers and partners to embed AI-powered content generation directly into their own applications and workflows, and to transform presentations, documents, websites, knowledge bases, and existing media into engaging avatar-led video experiences significantly faster than through traditional production methods.

We also continued investing in enterprise governance, enabling large organizations to maintain brand consistency, approval processes, permissions, security, and compliance while scaling AI-generated content. On content management and intelligence, we made significant progress integrating the Kaltura and PathFactory platforms.

Content and workflows can now be synchronized across the two platforms, bringing together video, documents, webinars, learning content, events, knowledge bases, and customer engagement data. This creates a unified first-party signal layer that can help organizations understand which content performs best, which assets contribute to business outcomes, what users are seeking, and what should be recommended next.

This content intelligence foundation is becoming a core building block for the AI capabilities and solutions we develop. On interactive experiences, we continued embedding conversational AI across our product portfolio.

This enables users to move beyond manually searching large content libraries, and instead interact with intelligent agents that can understand intent, answer questions, recommend and present relevant information, coach users, and guide them towards successful outcomes. The platform also continued to receive significant industry recognition during the quarter.

Kaltura was named a leader in both the Q2 2026 Forrester Wave for Virtual Event Management Platforms and in the 2026 Aragon Research Globe for Enterprise Video. We were also recognized by ISG Research as an exemplary provider among emerging conversational AI providers, and received the Best Event AI Technology Award at the Eventex Awards.

Gartner also recognized Kaltura in both its Video Platform Services and Meeting Solutions Market Guides, and we were included in the 2026 WealthTech100 list honoring the world's most innovative tech companies for wealth management. Our annual Enterprise Connect and Education Connect events also attracted record attendance and featured business and technology leaders from organizations including Morgan Stanley, Cisco, AWS, IBM, and Palo Alto Networks.

Looking ahead to the second half of the year, we have an ambitious development roadmap. On the avatar front, we plan to expand beyond facial representation to incorporate richer gestures and emotional expressions.

We also intend to improve our personalization and context capabilities, and develop real-time generative user interface experiences. Instead of presenting users with static, identical, and primarily text-based experiences, these capabilities are intended to enable rich, personalized, and intent-based content journeys that are continuously generated and curated by multimodal conversational agents.

We now have the core building blocks of our agentic digital experience platform in place. A major focus for the second half of the year is packaging these capabilities into two comprehensive solutions centered on large and strategic use cases: Agentic Revenue Engagement and Agentic Learning and Enablement.

Building on the revenue engagement suite we discussed last quarter, we packaged and showcased the first integrated version of our Agentic Revenue Engagement solution at the recent Adobe Summit, the Forrester B2B Summit, and Salesforce Connections. It combines video and rich media experiences, content intelligence, and conversational AI within an intelligent buyer engagement platform.

The solution is intended to help organizations understand customer buying intent, create personalized buyer journeys, recommend the next best content, automate follow-up, support digital sales rooms, and introduce conversational AI throughout the customer lifecycle. We believe this positions Kaltura at the intersection of several important enterprise software categories, including content intelligence, digital sales enablement, account-based marketing, customer engagement, and AI-powered revenue technology.

Our differentiation is our ability to combine rich engagement, journey orchestration, and real-time intent-based conversational experiences and enterprise-grade infrastructure within one platform. The adjacent categories addressed by this solution collectively represent an estimated market opportunity of more than $20 billion and are growing at more than 15% annually.

These categories include conversational automation, where PathFactory is already recognized as a leader by Forrester, as well as marketing automation add-ons, revenue enablement, and personalization. In our previous earnings call, we discussed training and learning use cases for employees, customers and partners, and students separately.

We're now bringing these capabilities together within a single Agentic Learning and Enablement solution spanning employee skilling and reskilling, customer and partner enablement and certification, and teaching and learning within educational institutions. Traditional learning systems primarily deliver predetermined and relatively static courses.

We see the future of learning becoming increasingly adaptive, conversational, and personalized. Our Agentic Learning and Enablement solution combines AI-generated learning content, enterprise knowledge, conversational avatars, AI tutors, coaching simulations, skills development, assessments, and personalized learning journeys all bit together.

Rather than delivering the same experience to every user, organizations can dynamically create experiences based on each individual's role, skills, progress, objectives, and business context. We believe this represents a significant evolution beyond traditional learning management systems.

Learning management systems, learning experience platforms, revenue enablement, and customer education are increasingly converging around a common enablement layer. Collectively, these categories also represent an estimated market opportunity of more than $20 billion.

Historically, they've often had separate budgets, buyers, and technology providers. AI is reducing some of those traditional boundaries because the underlying requirements are becoming increasingly similar: a shared content foundation, an intelligence layer, personalization, conversational interaction, and rich media delivery.

We believe platforms that can support multiple learning and enablement use cases through a common content and intelligence layer to be increasingly advantaged. To summarize, we delivered a strong second quarter, exceeding our guidance for both revenue and adjusted EBITDA while continuing to expand non-GAAP profitability.

More importantly, we're beginning to see measurable commercial evidence of our AI transition. We increased the number of deals that included our AI offerings across a broad range of industries and use cases.

Our AI-related pipeline already includes more than 500 opportunities, representing around $17 million in non-weighted potential ACV. While not all these opportunities will materialize, we expect many opportunities to grow and many others to be added.

The revenue contribution remains limited at this stage, but the growth in bookings, proofs of concept, and pipeline support our confidence in stronger second-half momentum and a more meaningful contribution in 2027. We enter the second half of the year with a stronger pipeline, a clearer solution focus, and increased confidence as reflected in our updated guidance.

With that, I will turn the call over to Liron. Liron.

Thanks, Ron, and hello to everyone on the call today. As Ron noted, in the second quarter, we continued to execute well, exceeding the high end of our guidance for subscription revenue, total revenue, and adjusted EBITDA.

We also posted a record non-GAAP gross margin of 75%, driven by a record non-GAAP subscription gross margin of 79%. Let me now walk through the quarter in more detail.

Total revenue for the quarter ended June 30, 2026, was $46.9 million, up 5% sequentially and 5% year over year. Subscription revenue was $45.6 million, up 6% sequentially and 8% year over year.

Professional services revenue was $1.3 million, down 13% sequentially and 40% year over year, consistent with our focus on recurring subscription revenue. On a segment basis, EE&T total revenue was $36.8 million, up 11% year over year, and subscription revenue was $36.4 million, up 12% year over year, while professional services revenue contributed $0.4 million, down 43% year over year.

Within M&T, total revenue was $10.1 million, down 10% year over year, and subscription revenue was $9.2 million, down 6% year over year, while professional services revenue contributed $0.9 million, down 38% year over year. GAAP gross profit for the second quarter was $34.5 million, resulting in gross margin of 74%, up 300 basis points from Q2 2025.

GAAP subscription gross margin was 78%, up 100 basis points from Q2 2025. The year-over-year improvement in gross margin reflects the continued benefit of our mix shift toward higher-margin subscription revenue, operating efficiencies, and the impact of unit economics.

GAAP operating expenses for the quarter were $35.3 million, compared to $34 million in the second quarter of 2025, an increase of 4% year over year. This includes the impact of the EQ and PathFactory acquisitions, integration costs, continued investment in our new product portfolio, and FX headwinds of approximately $1 million.

Adjusted EBITDA for the quarter was $5.9 million, an increase of $1.8 million from $4.1 million in the second quarter of 2025, and above the high end of our guidance range of $2 million to $3 million. Adjusted EBITDA margin was 12%, an increase of 300 basis points year over year, demonstrating our ability to expand non-GAAP profitability while continuing to invest in our AI roadmap, product innovation, and acquisition integration.

GAAP net loss for the quarter was $5.5 million, or 4 cents per diluted share, compared to a net loss of $7.8 million, or 5 cents per diluted share, in Q2 2025. Non-GAAP net profit for the quarter was $2.3 million, or 1 cent per diluted share, compared to a net profit of $2.5 million, or 1 cent per diluted share, in Q2 2025.

Remaining performance obligations, or RPO, were $164.3 million, up 6% sequentially and down 1% year over year. We expect to recognize 71% of this amount as revenue over the next 12 months.

Annualized recurring revenue for the second quarter was $184.6 million, up 9% sequentially and 8% year over year. Net dollar retention for the quarter was 96%, compared to 95% in the prior quarter and 101% in the same quarter last year.

As a reminder, NDR is a lagging indicator and reflects prior period bookings and retention dynamics. At the same time, this quarter, we achieved our strongest gross retention performance since the fourth quarter of 2022.

Moving to the balance sheet and cash flow, we ended the quarter with $35.5 million in cash, cash equivalents, and marketable securities. Net cash used in operating activities in the quarter was $2 million, compared to $2.7 million generated from operating activities in the second quarter of 2025.

We expect to generate cash flow from operations in the third and fourth quarters of the year, consistent with historical seasonality. Beyond the reported financial results, the second quarter represents continued progress in our strategic evolution toward a broader agentic digital experience platform.

As Ron discussed, our AI-related new bookings and sales pipeline have materially grown in the passing quarter. We have also made solid progress with the integration of PathFactory into our platform and go-to-market motions, while continuing to remain disciplined in how we allocate capital and manage expenses.

I will now turn to our outlook for the third quarter of 2026 and for the full fiscal year ending December 31, 2026. For the third quarter of 2026, we expect: subscription revenue to be between $43.9 million and $44.6 million, representing year-over-year growth of 5% to 6%; total revenue to be between $45.8 million and $46.5 million, representing year-over-year growth of 4% to 6%; and adjusted EBITDA to be between $2 million and $3 million.

For the full year 2026, we are thoughtfully raising all our guidance numbers and slightly narrowing the revenue guidance ranges. We now expect: subscription revenue to be between $176.6 million and $178.6 million, representing year-over-year growth of 3% to 4%; total revenue to be between $183 million and $185 million, representing year-over-year growth of 1% to 2%; and adjusted EBITDA to be between $15.8 million and $17.2 million.

Our guidance continues to reflect our goal of maintaining balance between investing in our strategic growth areas and maintaining adjusted EBITDA profitability and cash flow generation. We expect Enterprise, Education, and Technology to post a higher year-over-year growth rate compared with 2025, supported by the contribution from the PathFactory customer base and the early contribution from our new product portfolio in the second half of 2026, with a stronger impact in 2027.

We continue to forecast M&T year-over-year revenue decline this year due to the elevated churn in 2025, but still expect to post both higher M&T new bookings and retention this year, which are forecasted to regenerate sequential quarterly M&T revenue growth in 2027. We also continue to forecast a material year-over-year reduction this year in revenue from professional services in both EE&T and M&T, aligned with our strategic focus on recurring subscription revenues.

On the cost side, our guidance incorporates the expected costs associated with PathFactory integration, continued investment in our new product portfolio, and the expected impact of FX headwinds. To summarize, the second quarter demonstrated continued execution against both our financial and strategic priorities.

We exceeded our guidance for revenue and adjusted EBITDA, achieved record gross margin, and delivered our strongest gross retention performance since the fourth quarter of 2022. While the revenue contribution from our newer AI offerings remains early, the continued increase in customer engagement, booking activities, proof of concept, and pipeline gives us confidence in the long-term opportunity ahead.

We remain focused on disciplined execution and on balancing growth and profitability as we continue to advance our strategic transition and maximize long-term shareholder value. With that, we will open the call for questions.

Operator.

Hey, good morning, guys. Thanks for taking the questions.

Ron, nice to see some of the new logo activity in the quarter. The avatar technology in particular seems to be getting you into some new markets.

Can you just talk about distribution efforts there? How are you building the pipeline?

How are you breaking into these new verticals? Where do you see the most interesting opportunities in the pipeline?

DJ, thank you for that, and good morning to everybody. Exciting growth and opportunities coming within the AI space as we expected.

You've mentioned new logos. Indeed, there is a pickup and the pipeline suggests there's 33% right now the pipeline is of new logos, and that's picking up and growing.

We knew, because the historical industry we were at, the video industry, came to a point where a lot of the customers stuck to their existing vendors. It was really a fight in the trenches around can you move places where you share with a different vendor, a customer, and you could take their piece, which we've done well, and to have some new logos.

A lot of folks did not want to move even if we had, and we did, a better solution, because of switching costs and just the headaches associated with that. Now, with the advent of the agentic offerings that we're offering along with and together with the rest of what we're doing, people are excited to go ahead and make that move, and they're happy to make that move across both.

That's exciting. We have stated we have a building pipeline.

We got a couple hundred Agentic Avatar opportunities, about 100 of Avatar Video Production Studio opportunities, 60-plus active and scoped POCs. As I mentioned, the ACV is building up.

It's still preliminary, but it's going there. You've asked about distribution of verticals.

First, from a go-to-market perspective, to be clearer how we're actually doing this, we're still divided to industries, we have folks going into EDU and M&T separately. Within enterprise, we further segmented it to go between tech and healthcare and the rest of the other verticals that are gradually building up.

We have vertical separation. We still have geographic between Europe and the US, by the way.

We see some nice pickup across, but of course led by the US. What's also interesting is we have some interesting channel opportunities that are building up.

A lot of them are companies that are also looking to buy internally, and then are saying, "You know what? We like that, and we want to use that also as a distributor," which would be interesting.

These things would take a bit of time, and we're going to need to deploy first with them for them to see the success and then take this to market beyond. We've said that before, this solution and these types of solutions have higher ROI, but are also more self-serve in nature, more low-touch in nature, enabling not just more customers, but easier deployment and therefore lend themselves well for distribution.

Finally, insofar as how our salespeople are actually walking around and selling this, there's kind of four main go-to-market motions or engines. One is the conversational agents, in which we put together Genie and our Agentic Avatars and ChatFactory from PathFactory in our SDK into one conversational agent that is multimodal, and we're pushing that strongly forward.

The second is AI content creation, which is Content Lab plus the Avatar Video Production Studio plus some other stuffs that we've developed since around personalized videos. We're taking all of that, which we have not done before.

Again, just like conversational agent being new and exciting, the content creation piece is new and exciting. The third are cross-sells between PathFactory and Kaltura.

We have a great pipeline that's building up and great opportunities to sell both Kaltura to PathFactory and vice versa. The fourth is taking it all together into full bundle wins, mainly coming in to competitors in the traditional industries we're at and saying, "Well, we have all these exciting things that do move the needle for you, and we're happy to do this in a way that's financially appealing."

That's quite exciting for folks. We're doing these four offering across verticals, across regions, across channels, and across the journeys that we discussed between the customer journey, the employee journey, the learner journey, the audience journey.

There's a lot of exciting stuff.

Super helpful. If I could ask a follow-up on the ARR increase in the quarter, I think it was up a little less than $16 million sequentially.

Can you just help us unpack how much of that was M&A-driven, how much of that was organic Kaltura strengths? I think you alluded also to the expectation for some potential PathFactory attrition as that asset's integrated in the business.

Can you just unpack that a little bit and what your expectations are there?

Happy to do that. You asked about ARR.

I think it's easier to answer by way of revenue because some of that is actually reported and stated within the pack. Let's talk about Q2 revenue.

We had expected declines in M&T, so that's known. We also had EE&T without PathFactory some decline, but that was expected because of one-time revenue in quarter one that was on-prem related and one-time related.

If you take that out, there was no decline. It was kind of flattish, if you may, without the PathFactory, which is kind of expected right now because it's seasonal, coming out of Q1 the net bookings are traditionally not adding stuff.

If you take off the on-prem stuff, that kind of remains where is. PathFactory contributed $4.9 million in revenue out of our $46.9 million in total.

By the way, the same for subscription, because it's all subscription there. That's the amount that was there.

It's higher than we expected to some extent. Of course, we were cautious, because coming into an acquisition, you got to be careful.

Also, we did say that there's some attrition, and a lot of that is built into what we've taken even before we're doing anything, because the next two, three quarters are already built in. We expect that number, albeit that it started where it did, to still come down from a PathFactory perspective over the next couple of quarters and then turn around with the other things that we're doing.

Again, if you're unpacking Q2, that's how it's had, kind of flattish, as was expected, if you take out the on-prem for EE&T, continued decline in M&T as expected, not beyond, and the PathFactory contribution. If we think forward on the Q3 guide and beyond, we're guiding still the sequential decline, again, taking in the usual cushions that we have, but when you unpack that, what you're seeing is we're probably going to have, again, still flattish on the EE&T side plus conservatism, it could go up, some headwinds on PathFactory that's expected.

Again, we over-did revenue on the second quarter. We expect some of these things to catch up in the third quarter and get that reduced, and continued decline in M&T.

Kind of sharing the decline, if you may, between M&T and PathFactory, again, with hopefully cushions. Let's see.

We are guiding for a little bit of a PS increase into the next quarter, so that's what we're taking there. Then as we look into the rest of the year, kind of the deemed guidance where in the half of the year, you can see what we're saying for the rest, you kind of assume it's then starting to pick up.

We still expect PathFactory maybe to have some headwind for its original base offering for the next few quarters until we turn it around, but the rest of Kaltura, between the growth and what we're seeing now in AI and the opportunities that are building up, are going to overtake that, and then we're going to start seeing the sequential pickup there. You can see that slight expectation coming into Q4 as this picks up.

Again, that's still big as we said. As you see for the year, we're increasing guidance.

All in all, we're doing ahead of what we expected. It's the second time in a row that we're increasing guidance.

If you look at expectations for the second half of the year on the subscription basis, it's definitely there, a bit above. Again, if you look at the total, there may be some headwinds around PS that we are careful with.

All in all, we're moving in the right direction, no surprises. Hopefully, we're going to meet the expectations that are out there, and we're really excited about AI.

Let's see if we could post some bigger wins and update you guys. Does that give you the color you wanted?

It's perfect. More than I was looking for, and so I appreciate all the detail.

Thank you.

No, appreciate that. Thank you.

good morning. Wanted to ask you about go-to-market, Ron, and as you integrate PathFactory and you've got a new set of products and maybe a new sales motion in some ways, can you characterize kind of how that pivot is happening?

Are you doing retraining of your existing sales force? Are you hiring the new skills?

How are you managing kind of the people and process side of rolling out your new agentic and avatar capabilities within the product set?

Thank you so much, Ryan, and looking forward to speaking at your event next week. Thank you so much for having us.

We're excited. As always, we're training.

We're going again and again through many trainings. By the way, right now, we're going through what we call a summer camp, which is a three-day training session, started yesterday, next couple of days, focused, by the way, even on what's coming next, because what I said earlier to DJ is everything we're doing right now, but we've also shared with you guys the two solutions that we're building around the Agentic Revenue Engagement and around the learning and enablement.

We're now fully enabling everybody to go ahead and sell these full solutions. I'll get back to that.

Generally speaking, the good news is, this is an evolution, not a revolution. The customers we're going after are the same customers, the buyers are the same buyers, in some cases they're more, where Kaltura had a bit less talk about CX experiences and marketing that were covered now with more PathFactory, and the companies are working great together.

Leadership came together for multiple days sessions, alignment, working 100% within the different teams, salespeople, go-to-market teams, developer teams, everybody is working well. As indeed they're being trained, it is not an earthquake and it is not suddenly needing to teach them something completely different.

It's an evolution state from what we have done. That's why the pipeline is building very nicely, our existing customers, new logos.

Are we hiring more people? Yes.

Are we bringing in more talent that's diverse? Yes.

Our existing talent and the existing relationships we already have in place play very strongly towards what we're doing, both with the product mix that I mentioned earlier in the go-to-market motions I just answered DJ, and in the two solution sets that we're now launching, which I'm happy to tell you more about.

Great. Really helpful.

That's great to hear. You talked about maybe some churn coming on the Path side.

What's driving that? Is that kind of roadmap repricing, kind of refocused the R&D efforts around your kind of larger customer opportunities, or what's driving some of that downselling on the Path product?

When we took PathFactory, when we're asked what's the order of magnitude of revenue, we said that it's in the teens. If you look at a $4.9 million times four, it's almost $20 million, but the reason is we left cushion because we're asked about the run rate, and we knew the run rate might come down.

We also said as we acquired the company that it was a declining-revenue company, not because it's not amazing technology and amazing customers, but because of the positioning of the base core standalone PathFactory product. As a layer for content and user intelligence that is enabling to create customer journeys, it was kind of fighting between some other players out there doing a lot more, doing better, doing exciting things, but being somewhat pushed out by some of the other guys.

The difference is as we take them, and we said that in the acquisition, is we're not taking PathFactory just to sell PathFactory standalone, but more so, and most importantly and number one, is to turn that into the, quote-unquote, "brains" of our agentic motion, where you're putting together their understanding of content and users and orchestration of journeys together with our content management and experience layers and content creation layers put together. Now when we're pushing and promoting our agentic revenue platform, we're talking about everything from taking organizational context to understanding buyer intelligence, to creating engaging experiences, to creating revenue activation, and it's put together.

That's why people love how it comes together into an end-to-end agent. It's not just the brain; it's the brain within the full experience.

This is the great potential. This is why we acquired the company, not to take its existing exact go-to-market motion, existing exact products.

That being said, we're also seeing even within those that are just wanted to buy PathFactory, there is a rejuvenated interest because it's now in a stronger company. We're doing this with more opportunities and more marketing with our existing customer base, and we absolutely are seeing folks that are just buying PathFactory as is, which is a great product.

The expectation as we move forward is for it to somewhat glide, given past relationships that are already coming to bear, even past acquisitions that they've made that are going through migrations and some folks moving. There's a certain conservatism also that we're factoring in.

As you've seen, we beat this quarter and we've hopefully continue to beat as we've done in the past. While we expect the core product to be good and well and hopefully grow, but we're cautious, the combination is where we are really going on all four cylinders.

Let me add, because I spoke about the Agentic Revenue Engagement and the big part that they play there, plus the domain expertise in CX, it is the same brain around orchestration that is then being used towards our Agentic Learning and Enablement solution to build the knowledge graph and to build the content logic and understanding for training, enablement, which, by the way, does not go just for employees; it's training, enablement for customers and for partners, that's also customer experience. These things are conversations we're already having in the market as we speak.

To summarize, for PathFactory, a turnaround on their core business because of the acquisition, conservatism, and some headwinds on the short term, which was baked in already, and we had assumed it was some pleasant surprise in Q2, we expect more of it. The big bonanza is what we had always said: the combination into our Agentic Revenue solution, and coming after that, the learning and enablement solution with the brains within our agents.

Really helpful, Ron, and thanks for that.

Thank you, everybody. Again, as said, I think a good, solid, strong quarter, achieving our numbers, but really continue to keep our eye into the future as we can continue to build our AI offerings and move to become a full digital experience platform.

We have our pipeline showing for it. Shared a lot more than we usually do to start giving you a feel for where it's going.

We said the impact's going to be in the second half of the year. We continue to expect that.

We've increased numbers accordingly. All eyes are in the future as we turn these opportunities into wins and share them with you in the next few quarters, and looking forward to the Canaccord event again next week.

Thank you all for participating. Have a beautiful week.